Anabelle Colaco
23 Jul 2026, 09:28 GMT+10
CUPERTINO, California: Apple is set to launch a new device leasing program called Apple Upgrade in the United States on July 28, aiming to encourage customers to upgrade their devices more frequently, Bloomberg News reported on July 21, citing people familiar with the matter.
The new program comes as Apple has increased prices on iPads, MacBooks and other devices, while keeping iPhone prices unchanged despite rising memory and storage chip costs driven by AI-related data center demand.
According to the report, Apple Upgrade will cover most iPhone, Mac, iPad and Apple Watch models, with Klarna Group serving as the financial backer for the program.
The service will operate as a subscription, allowing customers to pay off devices early, switch to newer models before their lease ends, or keep the device once the leasing period is complete.
Apple plans to offer the program through both its retail stores and online channels.
The company also intends to promote Apple Upgrade as providing lower monthly payments than its current financing options, Bloomberg reported.
As part of the transition, Apple plans to stop accepting new enrollments in its existing iPhone payment plans, including the iPhone Upgrade Program and its standard financing option.
Unlike the current iPhone Upgrade Program, Apple Upgrade will not include AppleCare. Certain products, including the Apple Watch SE, the entry-level iPad, the iPhone 16 and the MacBook Neo, will not be eligible for the service, the report said.
Business and education purchases will also be excluded, according to Bloomberg.
Apple and Klarna did not immediately respond to requests for comment.
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